There are several reasons to keep your business banking separate:
- Clean bookkeeping for revenue and expenses
- Easier to prove to IRS that your business is not a hobby
- If you incorporate your business, the IRS requires a separate business account
- Worst case scenario: clear audit trail for the IRS
- Professionalism goes a long way in the eyes of your customers and other business interactions
Setting up merchant services for your small business is key in today’s marketplace because fewer and fewer people carry cash with them. A merchant account allows your business to accept debit or credit cards payments.
This can be done by one of two ways:
- Enter into an agreement with a bank that has a processing relationship with the main credit card companies.
- Enter into an agreement with an authorized agent of the member bank, such as an independent sales organization or member service provider (ISO/MSP).